Toy market news

Funko crushes earnings estimates, reveals leadership transition plan

Funko net sales for the second quarter of 2021 spiked a whopping 141% versus the same period last year. The results reflect a mix of strong consumer demand paired with the first full quarter of running up against the skewed numbers of 2020, during which Funko’s business was particularly upended due to its licensed goods and an immediate stop to live events due to the COVID-19 pandemic.

The Q2 earnings report was accompanied by the news that Funko will shuffle its leadership ranks effective January 3, 2022. Andrew Perlmutter will take the helm as CEO while current CEO Brian Mariotti will assume the new position of chief creative officer (CCO) and continue to serve on the company’s board of directors.

In the U.S. and Europe, sales eclipsed 2019 results with U.S. net sales increasing 110%. Sales of Pop! branded products grew 137% with evergreen properties accounting for 65% of net sales. A 132% spike in Loungefly led net sales of “other” products to grow 136%. Additionally, direct-to-consumer (D2C) sales grew by more than 190% and now account for 11% of Funko’s total sales.

Funko’s year-to-date net sales are up 81% through the first six months of 2021.